Regulatory Impact on Small Business Establishments

American Action Forum (AAF) research examines the private sector implications of regulatory cost burdens. In particular, we analyze the cumulative effect of regulations on the number of businesses for a range of establishment sizes and find that regulatory costs have a highly regressive impact on private industries. Specifically, with a 10 percent increase in cumulative regulatory costs, there is a 5 to 6 percent fall in the number of businesses with fewer than 20 workers.

Recent Developments in Patent Policy

Patents are a government-granted right that allows individuals or companies to exclude others from making, using, selling or importing inventions for a set amount of time, typically 20 years. By imitating a number of key features of real property, patents have allowed innovators to reap the gains of their effort.[1]  The United States has a highly-successful system for issuing patents; indeed observers are now concerned that too many patents are issued and too many activities are protected.

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